House in Setúbal (São Julião, Nossa Senhora da Anunciada e Santa Maria da Graça)

Overview

2-bedroom, 1-bathroom house of 51 m², energy rating E. Located on rua Batalha do Viso, Setúbal (São Julião, Nossa Senhora da Anunciada e Santa Maria da Graça) parish, Setúbal municipality, Setúbal district. Noteworthy Features: This property offers a unique opportunity to customize living spaces and includes a picturesque view of the Sado River, enhancing its appeal for both residence and investment.

Financial Summary

The valuation. The asking price of €227,000 sits significantly above the fair value of €190,099, indicating an overpriced property by €36,901 (19.4%). This discrepancy suggests potential challenges in achieving a profitable sale.

Investment Thesis

Long-term rental This property appears overpriced at €227,000, which exceeds its fair value of €190,099 by 19.4%. Given the 5.4% gross yield, the long-term rental strategy may not provide sufficient returns to justify the investment at this price. Value-add renovation While the potential for value-add renovation exists, the current listing price of €227,000 is significantly above the fair value of €190,099, indicating a 19.4% gap. The property's condition score of 0/100 suggests extensive renovations are needed, which may further escalate total investment costs. Family rental With a gross yield of 5.4%, the property’s asking price of €227,000 may be prohibitive for attracting family rentals, especially since it's priced 19.4% above its fair value of €190,099. The neighbourhood rating of 51/100 indicates average conditions that might not appeal to families seeking quality housing options.

Risks

Economic Vulnerability With an economic stability score of 40/100, there is a significant risk of economic downturn affecting the property’s value and rental income potential.

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